A few days after his scathing setback in the presidential elections, Argentine President Mauricio Macri announced on Wednesday (August 14th) that he wanted to cut taxes on low wages and increase social assistance to support the economy. from the country.

Intended for the middle classes, these measures are intended to "give a boost to the Argentines," said the head of state, who seeks a new mandate, during a televised speech before the opening of markets.

"What I asked you was very difficult, it was like climbing the Aconcagua," admitted Mauricio Macri about the efforts required of the Argentineans since coming to power. "You are tired and tired, arriving at the end of the month has become an impossible task, so many families have had to cut back on their expenses," he said.

Among the package of measures announced, is an increase in the minimum wage, which currently stands at 12,500 pesos (190 euros), the amount has not been specified. Extraordinary social assistance of 2,000 pesos (30 euros) will also be paid to employees and another 5,000 pesos (76 euros) to civil servants and security forces.

An income tax reduction is also implemented for employees. Small and medium-sized businesses will be able to spread their tax debt over ten years and the price of gasoline will be frozen for ninety days. These announcements concern "17 million workers and their families as well as all small and medium-sized enterprises", he added.

The peso plunges

Mauricio Macri hopes to close the gap in the polls before the election and calm social discontent in this country stuck in the recession. Alberto Fernandez, a moderate Peronist, and his coliter Cristina Kirchner, the former center-left president indicted in several corruption cases, won Sunday 47% of the primary vote, against 32% for the tandem composed of Mauricio Macri and Peronist leader Miguel Angel Pichetto.

This result, which augurs badly for the chances of reelection of the outgoing head of state, has provoked turbulence on the financial markets, which fear a return to a policy of economic interventionism led by the former government. After the announcement of the measures by the president, the peso opened Wednesday on the foreign exchange market down 12.3% to 61 for a dollar. The Argentinian currency has lost a quarter of its value since the announcement of the result of the primary, Sunday night.

With AFP and Reuters